Strategic finance: An exhaustive and practical guide for CFOs.

What is strategic finance?

Strategic finance is the process of unifying and translating data from all teams in a business into actionable insights that would help with the growth of a business and increases profitability in the long run.

Strategic finance team members collect real-time data from different teams and software businesses run to make those strategic financial decisions needed to drive growth.

They typically spend less time on traditional accounting tasks such as closing books and focus more on achieving long-term financial goals by making data-driven financial decisions.

That said, it’s important to note that many will pass strategic finance as one of the many ‘hip-rebranding’ of FP&A since both terms are used interchangeably and the job descriptions tend to look the same.

Source:

Reddit

However, that’s not the case, as strategic finance is a practice that evolved due to the limitation of FP&A.

The differences between strategic finance and FP&A

Simply put, strategic finance focuses more on helping businesses to achieve long-term growth goals with the help of data-driven financial decisions. In contrast, FP&A focuses on maintaining the financial health of a business.

To help you better understand, we've summarized the differences here:

Check out the full article here:

https://www.cubesoftware.com/blog/strategic-finance